WashPost : 2 dead, 179 exposed after ‘superbug’ outbreak at hospital--> RTGN +12

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2 dead, 179 exposed after ‘superbug’ outbreak at hospital

LOS ANGELES — Contaminated medical instruments are to blame for infecting seven patients, including two who died, with a potentially deadly “superbug” at a Los Angeles hospital, officials said. A total of 179 patients have been exposed to the antibiotic-resistant bacteria.

They were potentially infected with Carbapenem-Resistant Enterobacteriaceae, or CRE, during endoscopic procedures at Ronald Reagan UCLA Medical Center between October and January, said Dale Tate, a University of California, Los Angeles spokeswoman. Tests on a patient uncovered the outbreak.

Similar outbreaks of CRE have been reported around the nation. They are difficult to treat because some varieties are resistant to most known antibiotics. By one estimate, CRE can contribute to death in up to half of seriously infected patients, according to the national Centers for Disease Control and Prevention.

The bacteria may have been a “contributing factor” in the deaths of two patients, a UCLA statement said. Those who were exposed are being sent free home-testing kits that the university will analyze.

The bacteria can cause infections of the bladder or lungs, leading to coughing, fever or chills.

UCLA said Wednesday that infections may have been transmitted through two endoscopes used during the diagnosis and treatment of pancreatic and bile-duct problems.

“We notified all patients who had this type of procedure, and we were using seven different scopes. Only two of them were found to be infected. In an abundance of caution, we notified everybody,” Tate said.

The two medical devices carried the bacteria even though they were sterilized according to the manufacturer’s specifications, UCLA said.

“We removed the infected instruments, and we have heightened the sterilization process,” Tate said.

National figures on the bacteria are not kept, but 47 states have seen cases, the CDC said.

Since 2012, there have been about a half-dozen outbreaks reaching as many as 150 patients, according to the Los Angeles Times, which first reported the UCLA outbreak.

One occurred in Illinois in 2013. Dozens of patients were exposed to CRE, with some cases apparently linked to a tainted endoscope used at a hospital.

A Seattle hospital, Virginia Mason Medical Center, reported in January that CRE linked to an endoscope sickened at least 35 patients, and 11 died, although it was unclear whether the infection played a role in their deaths.

Experts say the cases represent a disturbing surge.

“This bacteria is emerging in the U.S., and it’s associated with a high mortality rate,” Dr. Alex Kallen, an epidemiologist in CDC’s Division of Healthcare Quality Promotion, told the Times. “We don’t want this circulating anywhere in the community.”

>>> Mead Johnson Nutrition pursuing buys

Mead Johnson Nutrition pursuing buys

Mead Johnson Nutrition (NYSE:MJN), the Glenview, Illinois-based pediatric nutrition company, is interested in making acquisitions and is in constant talks with potential targets, according to executives.

During his prepared remarks at Tuesday’s Consumer Analysts Group of New York conference, CFO Peter Leemputte outlined the company’s financial position.

“We're keenly aware of our cash balance and also the available debt capacity that we have, but we reiterate that growth is the highest priority for our use of cash and we intend to pursue potential acquisitions, such as the deal in Argentina,” the CFO said. “It can be very difficult to predict the timing of those transactions, and we're going to take a little bit more of the longer-term perspective in terms of pursuing those.”

On 15 March 2012, MJN acquired an 80% stake in Nutricion para el Conosur, a manufacturer, distributor and seller of infant formula and children’s nutrition products in Argentina under the SanCor Bebe and Bebe Plus brands. The purchase price was ARS 850.7m (USD 97.9m).

In the Q&A session at Tuesday’s conference, Deutsche Bank analyst Eric Katzman noted that MJN had not made many overseas buys aside from the Argentina-based deal, and asked CEO Kasper Jakobsen if it had been close to making any acquisitions.

The CEO said the company looked at M&A in a similar way to organic growth, considering potential revenues and if it could accelerate the growth of the possible target. He said it also evaluated whether an asset could bring new capabilities to market faster, and therefore increase growth in its base business.

Jakobsen noted that there were few independent businesses in MJN’s core business, with the majority of assets being fast-growing and profitable parts of larger entities which were rarely for sale.

“And I think as we look forward, the timing of it (M&A) is going to be somewhat lumpy,” he said. “I'd like all of you to think that that's not because we're not intent on doing it. It is not because we are not working on it. It's not because we are not talking to people. In fact, we're talking to people sort of on an ongoing constant basis.”

The CEO said MJN was often dependent on special situations occurring which could present a more adverse risk profile than it would like, noting the Argentinian acquisition as an example.

“But if you want to expand in this very attractive category, you got to be willing to ride some of these storms and take a longer-term view on it, and we are doing that. And we will do things,” Jakobsen concluded.

MJN provides more than 70 pediatric nutrition products in over 50 countries across the globe. Its brands include Enfamil, Choco Milk, Lactum, Nutramigen and Sustagen.

The company has a light M&A history since its IPO in February 2009.

In early 2014, MJN completed the sale of its interest in International Pediatric Nutrition Company to JV partner Almarai. The deal was valued at USD 4m. In 2011, MJN’s Brazilian subsidiary MEFEN Participacoes bought Mappel Industria Alimentos, a Brazil-based company manufacturing food items, for an undisclosed sum.

Bristol-Myers Squibb Company spun-off its 83.1% stake in MJN to shareholders via an exchange offer in late 2009.

For its February 2009 IPO, lead managers were BofAML, Citi, Credit Suisse, JPMorgan and Morgan Stanley, while Cravath, Swaine & Moore was used for legal. The same law firm was used by Bristol-Myers for the spin-off later that year. MJN used William Blair and Mayer Brown for that transaction. In-country law firm Demarest was used by MJN’s subsidiary for the Brazilian deal in 2011.

MJN has a market capitalization of USD 21bn.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance
: CSLT -11.5%, NLST -11.5%, (announces common stock offering, sees Q4 below estiamtes), KEYW -9.2%, EOG -7.8%, CYBE -6.5%, CDE -5.8%, SCTY -5.2%, CBB -4.5%, REXX -4.1%, LINE -3.9%, BGS -3.6%, YUME -3.4%, SUNE -2.9%, VNDA -2.7%, TS -2.6%, DAVE -2.6%, DAN -2.5%, DENN -2.3%, AIMC -2.1%, RGLS -1.5%,PWR -1.4%, PCYC -1.3%, REMY -1.1%, AGI -1%

Select oil/gas related names showing early weakness: OAS -4.9%, WLL -4.7%, GDP -4.6%, SD -4.3%, SDRL -3.6%, STO -3.6%, PWE -3.3%, PBR -3.3%, WTI -3.1%, OXY -2.4%, TOT -2.3%, SLB -2.3%, COP -2.3%, HAL -2.1%, RIG -2.1%, CRZO -2%, CHK -1.9%

Other news: OCRX -20% (announces preliminary topline results from Phase 2a investigator-sponsored study evaluating OCR-002; data demonstrated a favorable safety profile), NLST -11.5% (priced an underwritten public offering of 7,692,308 shares of its common stock at a price to public of $1.30 per share), GENE -5% (cont strength), NGL -2.3% (announces decision to increase the size of its Grand Mesa Pipeline to a 20 inch capacity design; capable of transporting over 200K barrels/day), ACT -2.2% (files mixed securities shelf offering), ANGI -2.1% (after 60% jump yesterday following earnings), TI -1.1% (may buy remaining Telecom SpA stake, according to Bloomberg)

Analyst comments: PCYC -1.3% (downgraded to Neutral from Overweight at JP Morgan), PLCE -1.1% (downgraded to Hold from Buy at Maxim Group
)

>>> Wal-Mart beats by $0.07, reports revs in-line; guides Q1 EPS below consensus

Wal-Mart beats by $0.07, reports revs in-line; guides Q1 EPS below consensus; guides FY16 EPS below consensus, lowers rev guidance

Reports Q4 (Jan) adj. earnings of $1.61 per share, $0.07 better than the Capital IQ Consensus of $1.54; total sales rose 1.4% year/year to $130.65 bln vs the $131.83 bln consensus.
  • U.S. Q4 comparable store sales +1.5% vs 0-1% guidance (-0.4% Q4 last year); WMT reports Sam's Club Q4 comparable store sales of +2% vs 0-2% guidance (excluding fuel); Neighborhood Market format comps +7.7%.
Co issues downside guidance for Q1, sees EPS of $0.95-1.10 vs. $1.14 Capital IQ Consensus. Co sees U.S. Q1 comparable store sales +1-2% and Sam's Club comparable store sales +1-2%.

Co issues downside guidance for FY16, sees EPS of $4.70-5.05 vs. $5.20 Capital IQ Consensus; lowers FY16 revs to +1-2% (from +2-4%) to ~$487-492 bln vs. $495.48 bln Capital IQ Consensus.
  • If currency exchange rates remain where they are today, this would cause a negative impact to fiscal year 2016 net sales of ~$10 billion, as well as a negative impact on operating income of around $0.10 per share.
  • "Given the investments we're making in our worldwide e-commerce initiatives and in our associates through higher wages and training, we expect operating income to be pressured in fiscal 2016. We will invest ~$0.02 per share in the first quarter and ~ $0.20 per share for the full year in the new wage structure, comprehensive associate training and educational programs. Our incremental investment in global e-commerce initiatives will range between $0.06 and $0.09 per share this year.

>>> Facebook - Cowen reiterates Outperform rating, price target $91

Cowen reiterates Outperform rating, price target $91 
- reiterates as Top '15 Picks with 23-36% upside based on Firm's SOTP analysis- Firm notes that Instagram is a valuable asset for FB given its large, fast-growing and highly engaged user base that's drawing significant advertiser interest per our recent social user and ad buyer surveys.
- Firm's work yields higher confidence in their Instagram revenue estimates rising from $0.7BN to $5.8BN '15-'20.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance
: PAL +13.7%, ASTI +12.9%, TNK +11.9%, BJRI +10.9%, BBW +7.6%, SIX +5.8%, IPAS +5.6%, (also declared its commitment to remain independent and announced Gary Griffiths as chief executive officer and Patricia Hume as the newly established position of chief commercial officer), SNPS +5.2%, SGNT +5.2%, AVG +4.5%, ATRO +4.5%,STAR +4.5%, AYR +4.1%, TRN +3.7%, TILE +3.6%, MAR +3.5%, TMUS +3.5%, NVMI +3.4%, XPO +3.1%, ABX +3.1%, DRII +2.8%, IPI +2.8%, DRII +2.8%, SCG +2.5%, TK +2.4%, ARIA +2.2%, CRMT +2%, IDA +1.8%, MIC +1.6%, UIHC +1.1%, (also following late sell-off), LOPE +1.1%, HRL +0.9%, THRX +0.8%, DTV +0.8%

M&A news: DLPH +1.9% (announces definitive agreement to sell thermal business to MAHLE)

Select airline related names showing strength: VA +2.6%, DAL +2.1%, AAL +1.8%, LUV +1.7%, UAL +1.5%, HA +1.5%, ALK +1.5%

Select metals/mining stocks trading higher: HMY +5%, KGC +3.2%, IAG +3.0%, GFI +2%, SLV +1.3%, GDX +1.3%, AG +1.3%, EGO +1.1%

Other news: TTPH +12.3% (attributed to LA Times report on 'superbug' CRE that has infected 2 residents of California), EXEL +8.1% (FDA grants EXEL and Genentech's Cobimetinib Priority Review for use in combination with Zelboraf in advanced melanoma), CAPN +7.9% (cont strength), CYTX +5.1% (cont strength), FL +1.9% (approves new $1 billion share repurchase program, a 67% increase; Approves $220 million capital expenditure program for 2015; also increases quarterly dividend to $0.25 from $0.22/share), NBG +1.3% (cont vol with Greece/Eu talks), MNKD +1.1% (following late spike)

Analyst comments: EPRS +6.1% (initiated with a Outperform at Wedbush), SNY +1.3% (upgraded to Buy from Neutral at BofA/Merrill), HOLX +1.2% (upgraded to Buy from Hold at Canaccord Genuity), COH +0.9% (upgraded to Buy from Hold at Topeka Capital Markets), RCPT +0.7% (target raised to $140 from $125 at Credit Suisse; Outperform)